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Learn how to identify and use the common price pattern known as the Role Reversal to determine your entry and exit points in any trade. This educational information from The Market Guys is for educational purposes only and should not be considered as investment advice.
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www.TheMarketGuys.com The Role Reversal
www.TheMarketGuys.com The Market Guys, Inc. does not provide investment advice, tax advice or recommendations, and nothing on our website or online communications, which include email, should be construed as investment or tax advice. This information should be used for educational purposes only and may only be copied with the written permission from the Market Guys, Inc. You should seek your own professional advice regarding the appropriateness of implementing strategies before taking any action. Our principles are grounded in risk management particularly in how it applies to The 1% Rule for Managing Risk which is the intellectual property of The Market Guys, Inc. Most importantly…You are solely responsible for own investment decisions. Thank you.
www.TheMarketGuys.com The Role Reversal The Role Reversal is a common price pattern that is found on 99.9% of the charts you look at. Once you become familiar with this pattern you will be able to use it to determining your entry and exit points, on just about any trade you do.
www.TheMarketGuys.com Percentage of Accuracy Weekly Market Report since inception 96.1% Option Oracle Since 2009 89.36% Equity Oracle Since 2010 84.61% Engulfing Patterns Since 1982 80% Hammer Patterns Since 1982 80% Dojis & Spinning Tops Since 1982 80% Role Reversal Since 1982 80% Average TMG Student after 2 months of mentoring 70%
www.TheMarketGuys.com • Basic steps for using the Role Reversal line to Buy and Protect • Identify the market trends • Identify stocks within the trends • Identify your entry price (Pivot Point) • Identify your stop price (Below Support) • Calculate your position size (using the 1% Rule) • Execute your opening trade and your stop order to protect
www.TheMarketGuys.com • Identify the Trend and Identify Support • Look for support • Wait for a pivot point before you buy ( V )
www.TheMarketGuys.com • Identifying your stop price with T/A • Identify the key support level • Place your stop below support Support Stop range
www.TheMarketGuys.com What Causes the Role Reversal?
www.TheMarketGuys.com What Causes the Role Reversal?
www.TheMarketGuys.com What Causes the Role Reversal?
www.TheMarketGuys.com What Causes the Role Reversal?
www.TheMarketGuys.com What Causes the Role Reversal?
www.TheMarketGuys.com What Causes the Role Reversal? New buyers come in once they see a drop in volume.
www.TheMarketGuys.com Trailing the Stop Buy XYZ stock and protect against loss with a trailing stop below the purchase price Trailing Stop Price BUY Initial Stop Price
www.TheMarketGuys.com Simple Rules to Follow (for entering the trade) • Be patient. There is no need to rush the trade • Watch for a drop in volume just prior to the pivot point forming • Confirm that there is, in fact, a pivot point (V) • Wait till the end of the day (last 30 mins) before making the trade • Place the trade • Immediately set your stop loss order or price alert below support • Note: If you are trading the Role Reversal for the first time, then practice • the strategy on paper until you are familiar with the rules. • Your profits will work in direct proportion to your confidence.
www.TheMarketGuys.com • Next Steps: • Plug in – Webinars, Live events • Invest in your education – Books, CDs • TMG Video Library (R/R & 1% Rule) • K.I.S.S. – Keep it Super Simple
www.TheMarketGuys.com Would you like to learn more about our private mentoring service? Email me at AJ@themarketguys.com Learn how to put the odds in your favor and trade like the pros
